It is common for manufacturers or retailers to provide incentives to potential purchasers or lessees in order to increase the sale of an item. Particularly with respect to the sale of automobiles, manufacturers have offered lowered interest rates on financing, rebates and extended warranties in an attempt to increase sales of one or more classes of automobile.
One problem faced by potential purchasers or lessees of automobiles is the ability to obtain affordable insurance. Typically, prior to the completion of a sale or lease of an automobile, the purchaser/lessee must secure automobile insurance. An insurer or other party may require a deposit on the insurance ranging from 10-25% of the premium for the policy. This may pose a substantial burden on purchasers/lessees and the costs may affect their decision to purchase or lease an automobile. Even if the purchaser/lessee proceeds with the automobile transaction, the purchaser/lessee faces the prospect of paying separate bills for the loan or lease and the insurance premium, as separate entities usually provide the automobile and the insurance. Furthermore, the insurance premium may change every 6 months or year, at the discretion of the insurance provider, based on the insurer's costs of doing business, changes in underwriting exposure and the like.
Accordingly, it would be advantageous to provide a method of providing insurance which addresses certain of these problems.